Malaysia’s industrial sector is set for continued growth in 2025, supported by government initiatives, infrastructure developments, and the integration of artificial intelligence (AI) in industrial parks, according to Knight Frank Asia-Pacific’s latest outlook report.

The report titled “Charting new horizons – 25 trends shaping 2025” highlighted how global trade tensions, particularly the possibility of higher tariffs under a new Trump administration, are driving manufacturers to diversify production, making Malaysia an attractive alternative.

“With trade tensions likely to take centre stage in 2025, primarily in response to Trump’s planned tariff increase, manufacturers will strive to limit risks, manage costs, and explore new markets for production,” Allan Sim, senior executive director of Land and Industrial Solutions at Knight Frank Malaysia, said in an accompanying statement.

He said Malaysia’s strategic location, government incentives, and evolving industrial landscape position it as a key destination for manufacturers reassessing supply chains.

The report also highlighted the increasing role of AI and automation in shaping Malaysia’s industrial sector, particularly in logistics, warehousing, and high-value manufacturing.

“As Malaysia transitions into a high-tech, high-value manufacturing hub, we are witnessing a shift towards more sophisticated industrial facilities that align with global supply chain trends,” said Keith Ooi, Group Managing Director of Knight Frank Malaysia.

“AI-integrated industrial parks will be a game-changer, offering enhanced operational efficiencies, predictive maintenance capabilities, and optimised resource management, ultimately attracting both domestic and foreign direct investments.”

Malaysia has seen a surge in industrial investment, with strong interest in logistics, warehousing, and advanced manufacturing.

The report noted that Southeast Asia’s emerging markets, including Malaysia, are benefiting from shifting global supply chains and favourable government policies.

Despite economic uncertainties, Malaysia’s industrial sector is expected to maintain resilience, with AI-driven infrastructure and trade realignments reinforcing its position as a preferred hub for industrial and manufacturing investments.

This comes as Minister of Investment, Trade, and Industry Datuk Seri Tengku Zafrul Abdul Aziz said earlier that the rise of new advancements in artificial intelligence (AI) platforms, such as China’s DeepSeek, won’t jeopardise Malaysia’s data centre industry.

Instead, he said such advancements could even boost demand for them locally.

Source: Malay Mail

Knight Frank: Malaysia’s industrial sector poised to benefit from AI integration, global trade realignments in 2025

Malaysia’s manufacturing sector is likely to sustain positive growth, buoyed by resilient domestic demand and gradual improvements in supply chain conditions. 

Public Investment Bank Bhd (PublicInvest Research), however, said downside risks to external demand remain elevated, mainly in the second half of 2025 (2H25), as subdued global growth prospects and escalating geopolitical tensions weigh on export-oriented industries. 

“Heightened uncertainty surrounding global trade policies, especially following Donald Trump’s policy stance, could add further pressure on industrial activity. Despite these challenges, steady domestic consumption, fiscal measures supporting investment, and a gradual recovery in key trading partners may help mitigate external headwinds,” it said in a note.

It said the manufacturing sector remained under pressure at the start of 2025, with firms reporting continued moderations in both production and new orders. 

In response to subdued demand conditions, manufacturers cut selling prices for the first time since June 2023, marking the sharpest reduction since January 2015, according to S&P Global.

Purchasing activity was scaled back and employment moderated, with firms utilising spare capacity to clear outstanding backlogs. 

“According to S&P Global, the latest purchasing managers’ index (PMI) reading indicates that gross domestic product (GDP) growth remains on a positive trajectory, albeit at a more moderate pace, while also signalling sustained year-on-year improvements in official manufacturing output.”

The manufacturing PMI edged up slightly to 48.7 in January (Dec 2024: 48.6). 

Mong forward the global semiconductor sector, it said AI-related demand is likely to remain a key growth driver in 1H25, providing near-term support. 

However, sectoral headwinds are expected in 2H25, as weaker chip shipments in non-AI segments, sustained trade restrictions, and softer demand in key end markets, including automotive and industrial applications, could weigh on momentum.

In a separate note, Affin Hwang Investment Bank said manufacturers reported that demand remained weak, which may be attributed to uncertainty in the global economic demand. 

Nevertheless, manufacturers remained positive at the start of the year and expect a higher output over the next twelve months.

“Hence, we believe that further recovery in external trade activities and resilient domestic demand may spur the demand for manufactured goods in the near term,” it added.

Additionally, MIDF Research maintained a positive outlook for Malaysia’s manufacturing, which will be spurred by growing domestic spending, supported by rising employment and household income, higher minimum wages, and government salary hikes. 

The global tech upcycle is also poised to support the manufacturing sector. 

“However, we opine the strength of external demand could be constrained by intensified global trade tensions following higher tariffs imposed by the US and the retaliatory actions by other countries,” it said.

Source: NST

Positive growth for Malaysia’s manufacturing sector

Malaysia has taken several proactive measures to ensure that its electrical and electronics (E&E) exports to the United States remain unaffected amid the global trade war due to tariffs under President Donald Trump’s administration.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia continues to engage with the US to clarify that it complies with all regulations and does not violate any agreements or conditions set by the United Nations.

“It is true that Malaysia’s exports of E&E, semiconductors, and chips to the US are significant, accounting for approximately 26 per cent of US demand. I agree that we cannot take this lightly.

“That is why we have taken several early measures. First, we continue to engage with the US to clarify that we comply with all regulations and do not violate any agreements or conditions set by the United Nations.

“Second, we are expanding our trade networks to ensure that our exports are not overly dependent in just a few countries but are diversified into other markets,” he said during the Prime Minister’s Question Time in the Dewan Rakyat today.

He added that a high-level committee, overseen by the Investment, Trade and Industry Minister is closely monitoring the issue so that any potential impact remains minimal compared to the current trade pressures.

He was responding to a question from Datuk Seri Doris Sophia Brodi (GPS-Sri Aman) who asked about the implications of these trade sanctions on Malaysian companies, particularly in the E&E sector related to semiconductor chip manufacturing and how Malaysia is preparing for it.

Source: NST

Malaysia has taken steps to protect E&E exports amid US tariffs – PM

The additional tariff on China’s medical and surgical gloves is unlikely to significantly boost Malaysian players’ ability to capture global market share from Chinese players, HLIB Research said.

In the medium to long term, the firm said Chinese players will instead shift their focus to Europe and Asia from the US market (merely a shift in customer profile between Malaysian and Chinese players).

“However, when trade is diverted to Malaysia, we believe US medical rubber glove distributors are likely to prioritise reputable companies, particularly the listed Big 4 and established business relationships with proven track records and it could take at least three months of qualification procedures for a new business relationship.

“Hence, we see Hartalega Holdings Bhd and Kossan Rubber Industries Bhd as clear beneficiaries, given their listing status and having relatively higher exposure to US customers,” it said.

In the short term, HLIB Research said the tariff is unlikely to create another round of higher-than-expected tariff-led in the average selling price (ASP) in US dollars for Malaysian glove makers, as seen in the fourth quarter of 2024 (4Q24).

“This is because US glove distributors have already re-established their supply chains in Malaysia, unlike in mid-September 2024 to 4Q24, where US glove distributors rushed to re-establish supply chains in Malaysia, which has allowed local glove makers to strengthen their bargaining power.

“For perspective, assuming all Chinese medical rubber gloves were diverted to Malaysia, tariff-related shifts could only result in an incremental glove demand of 22 to 28 billion pieces per year.

“This would just account for seven to nine per cent of Malaysia’s total supply in 2025, which only represents a four per cent rise from the 2024 level,” it added.

The firm maintained its “Neutral” outlook on the gloves sector.

Source: NST

US tariffs on China’s medical gloves unlikely to benefit Malaysian players

Malaysian glove makers and semiconductor players are expected to benefit from the imposition of higher tariffs by the United States on imports of Chinese goods, said Kenanga Investment Bank Bhd.

In a research note yesterday, it said local glove makers would benefit from the broadened average selling price (ASP) discount on Chinese glove imports in 2025 following the US imposition of an additional 10% tariff to the current 50% on China glove exports into the US.

“For illustration purposes, a 50% plus 10% tariff hike is expected to raise Chinese glove producers’ ASP to US$27US$29 (RM121-RM130) per 1,000 pieces (from an assumed base case ASP at US$17-US$19 per 1,000 pieces),” it said.

Therefore, it said, this positions Malaysian glove makers’ ASPs of between US$18 and US$20 per 1,000 pieces at a steep 25%-32% discount versus the Chinese alternative. We keep our 2025 forecast ASPs at US$20-US$21 in our earnings model for now.

“Any volume loss in non-US markets can be offset by higher demand from the US, which historically commanded higher ASP than non-US markets, and the US had historically accounted for 35%-40% of Malaysia’s total glove volume,” it said.

The investment bank believes Hartalega Holdings Bhd is the biggest beneficiary because the US market typically accounts for 50% of its sales volume.

Regarding the semiconductor benefit from US tariffs, it said Malaysia, as a key player in outsourced semiconductor assembly and test and back-end semiconductor services, would stand to benefit from supply chain diversification as global technology firms may accelerate the adoption of a more aggressive China+1 strategy to reduce reliance on China.

“Over the medium term, Malaysian firms are well positioned to capitalise on the structural shift in global supply chains,” it said.

However, Kenanga Investment Bank said Malaysia may experience varying degrees of impact depending on supply chain realignments, trade policies and broader geopolitical dynamics.

Sourec: Bernama

Malaysian glove, semicon players set to gain from US tariffs move

The company is driving progress while building a lasting legacy through AI advancements and community initiatives

MICRON Technology Inc, a global leader in memory and storage solutions, is positioning Malaysia at the heart of the artificial intelligence (AI) revolution while driving sustainability and local economic growth. 

Since its establishment in 2010 (in Muar, Johor), 2018 (Prai, Penang) and 2020 (Batu Kawan, Penang), the company has grown to employ 5,740 people, including 4,700 in manufacturing, 350 in research and development (R&D) and 390 in global hub roles such as finance, IT and people services. 

Bearing its biggest footprint in Malaysia with 145,000 sq m, the Batu Kawan facility serves as the Centre of Excellence for solid state drives (SSD) and is a qualification site for cutting-edge memory products. 

In total, Micron Technology’s footprint in Malaysia stood at 170,000 sq m. 

Assembly and Test NAND Operations corporate VP Amarjit Sandhu shared how the site contributes to the company’s global strategy and local impact. 

“Malaysia is not just a manufacturing hub; it is a cornerstone of our global strategy,” he said during a visit by The Malaysian Reserve (TMR) to Micron Malaysia’s facility in Batu Kawan recently. 

Key products produced in Malaysia include NAND flash memory, compute DRAM (dynamic random-access memory), client and enterprise SSDs and DIMMs (dual in-line memory modules). 

Globally, Micron recorded US$25.1 billion (RM112.2 billion) in revenue for financial year 2024 (FY24), solidifying its position as a leader in memory and storage solutions. 

Its product portfolio includes high-band-width memory (HBM), DRAM, NAND flash storage and SSDs, all of which are indispensable in powering today’s data-intensive applications. 

Headquartered in Idaho, US, the company has operated for over 45 years across 18 countries, boasting 11 manufacturing sites and 13 customer labs. It has amassed a portfolio of over 58,000 patents and employs approximately 50,000 people worldwide. 

Leading the AI Revolution 

At the heart of Micron Technology’s innovation is its ability to power the AI ecosystem. As AI applications like ChatGPT revolutionise industries, memory and storage solutions have become the backbone of these technologies. 

Micron Malaysia manufactures products like HBM3E and DDR5 memory, which are specifically designed to meet the demanding requirements of AI workloads. 

The HBM3E, for example, delivers 36 gigabytes of memory per unit, enabling higher-precision training and data processing with 30% lower power consumption compared to previous generations. 

Meanwhile, DDR5 memory boasts a 45% increase in bit density and consumes 24% less power in data centre environments. 

The company’s expansion memory and SSDs further enhance AI applications by providing high-capacity, low-latency solutions. 

These innovations allow AI models to process vast datasets efficiently, supporting breakthroughs in machine learning, natural language processing and more. 

Highlighting this, Amarjit explained that Micron Technology’s memory and storage products play a crucial role in powering the AI revolution, enabling applications that would otherwise be impossible. 

On the industry’s point of view, Amarjit revealed that AI PCs are expected to enter the market soon, highlighting that it will create a new wave of opportunities for the semiconductor industry. 

He also mentioned the impact of quantum computing, saying that whether AI or quantum technologies dominate, Micron Technolog y’s memory and storage products will remain indispensable. 

“Both technologies rely heavily on what we provide, ensuring our continued relevance,” he added. 

Micron Technology’s investments in AI technology are not just limited to Malaysia. Globally, the company has been driving innovation through advanced R&D efforts, including the development of new HBM products for next-generation AI processors, ensuring the company remains at the forefront of the industry. 

Amarjit added that approximately 13% of the world’s semiconductor components come from Micron Technology, with a substantial portion produced in Malaysia. These components are critical to AI infrastructure, supporting high-density memory modules, edge devices and data centres. 

“Malaysia plays a significant role in the global AI ecosystem,” he said, highlighting the country’s position as a manufacturing hub alongside major industry players like Broadcom Inc, Texas Instruments Inc and STMicroelectronics NV. 

Nevertheless, Amarjit highlighted Micron Technolog y’s commitment to delivering products that cater to the growing sector. 

“We are all riding the AI wave, and the products we have today are gaining good traction. Execution is very important to meet current demands while preparing for new products for tomorrow,” he said. 

Micron Technology aims to match its focus on innovation with strong execution across critical areas such as productivity, cost management, quality and reliability. 

“We will continue to focus on introducing the latest and greatest products required by the market,” he added, emphasising Micron Malaysia’s dedication to staying ahead in the rapidly evolving technology landscape. 

Meanwhile, AI integration into consumer electronics, such as laptops, TVs and smart home devices, is also creating new opportunities for memory and storage products. 

“As consumer electronics become smarter, the demand for advanced memory and storage solutions will only increase,” he said. 

Amarjit pointed to features like AI-driven optimisation in TVs and smart appliances as examples of emerging trends. 

Concurrently, leveraging on IR4.0 innovations to enhance its manufacturing processes, Micron Technology has integrated Internet of Things sensors into its facilities. 

It enables real-time monitoring of speed, temperature and pressure to improve operational efficiency and product quality. Additionally, Micron Technology is developing remote operating centres to further streamline process management. 

Empowering Local Economy 

Micron Technology’s presence in Malaysia extends beyond its facilities. The company has cultivated a robust local ecosystem, working with over 700 vendors and spending more than RM2 billion locally between FY20 and FY24. 

This ecosystem includes materials suppliers, equipment manufacturers and electronic manufacturing services providers, most of whom are located within a 60km radius of Micron Technology’s sites. 

Key partners such as Jabil Inc, Plexus Corp and NationGate Holdings Bhd play a vital role in supporting Micron Technology’s operations while creating additional jobs and opportunities in the region. 

“Micron Technology’s investments have a multiplier effect, benefitting not just our company but the broader economy,” Amarjit said. 

The company also announced plans to expand its operations in Malaysia, signalling its long-term commitment to the region. 

This expansion includes further enhancements to its manufacturing capabilities and increased collaboration with local suppliers, which is expected to generate even more economic value. 

Investing in Talent Development 

Recognising that innovation requires a skilled workforce, Micron Malaysia has made significant investments in talent development. The company collaborates with 12 universities, polytechnics and training institutes to build a pipeline of science, technology, engineering and mathematics talent. To date, it has invested over RM8 million in these initiatives. 

Micron Technology provides scholarships, internship and R&D opportunities, allowing students to gain hands-on experience and access job opportunities upon graduation. 

The company also takes on 50 to 60 interns annually, with plans to convert many of them into full-time employees under its New College Graduates programme. 

This structured approach aligns with the scaling of its operations, ensuring that as the company grows, it continues to meet its workforce needs. 

Micron Malaysia currently operates with 18 distinct functions, including manufacturing, R&D, finance and human resources, all of which have evolving requirements that guide their strategic hiring efforts. 

Its diversity programmes are equally impressive, with commitments to increasing the representation of women in engineering through partnerships and outreach programmes. 

The gender ratio among workers at its three facilities is approximately equal, with a 50:50 balance. 

The company also hires individuals with disabilities, military veterans and women returning to the workforce after childbirth. 

Facilities have been adapted to meet the needs of employees with hearing impairments, ensuring inclusivity at every level. 

Further supporting the workforce is the Employee Resource Groups (ERGs), which offer initiatives tailored to different demographics, from tenured professionals to young graduates. 

76% of Micron Malaysia’s team members are part of at least one ERG, demonstrating the company’s commitment to employee engagement. 

“Our goal is to anticipate and adapt to the changing requirements of the industry while building a workforce that meets the needs of our future,” Amarjit said. 

Building Stronger Communities 

Micron Technology’s impact extends well beyond its facilities, demonstrating a strong commitment to community engagement. 

Since 2019, the company has donated RM6 million to marginalised communities, flood victims and frontliners, while also providing 150,000 meals to underprivileged groups through collaborations with organisations like Rise Against Hunger. 

To promote education, Micron Technology has distributed laptops to students from low-income families, implemented a school adoption programme for mentoring rural schools and partnered Teach for Malaysia, providing grants worth RM120,000. 

Additionally, the company has prioritised environmental conservation by planting 400 mangrove trees and organising beach cleaning efforts, collecting over 1,000kg of waste. 

It also runs the AquaConnect project in Johor, supplying water to 460 indigenous families. 

In 2024, 92% of Micron Malaysia employees volunteered in community programmes, contributing 34,000 hours of engagement and demonstrating a deeply ingrained culture of giving back. 

These efforts reflect Micron Technology’s dedication to building resilient communities and fostering positive societal impact. 

Sustainability at Core 

In terms of sustainability in the semiconductor industry, Micron Malaysia is setting new benchmarks with an investment of RM5 million in sustainability initiatives. 

The Batu Kawan facility operates on 100% renewable energy, a milestone equivalent to removing 24,000 vehicles’ emissions annually. 

Amarjit also revealed that the facility’s open parking area will soon be outfitted with solar panels, transforming it into a solar-covered parking space in the near future. 

One of the most unique initiatives is its urban farming programme, also in Batu Kawan. To date, it has harvested 75,000kg of produce, including “kangkung” and winter melon, with 30% of the harvest donated to local communities. 

According to Amarjit, the farm is fully maintained by the staff, fostering a sense of community while promoting environmental stewardship. 

In a few years, the farm is expected to begin harvesting durians, as the trees have already been growing for two years. 

Nationwide, Micron Malaysia’s facilities recycle water, saving the equivalent of 6,000 Malaysian households’ yearly consumption, and have achieved a 94% waste recycling rate. 

The company holds certifications such as LEED for energy efficiency and ISO 50001 for energy management. It has also received accolades like the National Energy Award and the Green Tech Champion title at the Life at Work Awards. 

Navigating Competitive Landscape

As a leading player in the global semiconductor industry, Micron Technology operates in a fiercely competitive environment dominated by some of the world’s most prominent tech companies. 

Regionally, Micron Malaysia faces competition from major players operating in Malaysia’s thriving semiconductor ecosystem. Intel Corp, with its investments in Penang and the Kulim Hi-Tech Zone, is strengthening its local production capabilities. 

Meanwhile, companies like ams OSRAM AG and Ferrotec (USA) Corp are also contributing to regional semiconductor growth. 

Furthermore, the government anticipates increasing investments from Chinese high-tech firms, potentially introducing new competitors to the market. 

Globally, Micron Technolog y’s main global competitors include Samsung Electronics Co Ltd, SK Hynix Inc, Western Digital Corp and Intel. 

Samsung dominates the DRAM market with a 44% share, while SK Hynix, which acquired Intel’s NAND business in 2020, holds 30% of the market and has seen strong growth in AI-focused semiconductors. Western Digital commands 18% of the enterprise SSD market and Intel competes across multiple segments, including memory and storage. 

Despite the intense competition, Micron Technology’s emphasis on innovation, sustainability and talent development ensures that it remains at the forefront of the industry. 

Its ability to anticipate and meet market demands, particularly in AI-driven applications, positions it as a vital contributor to the global and regional semiconductor ecosystem. 

Recent Global Development 

Since the Covid-19 pandemic, Micron Technology has significantly expanded its operations and strengthened its role in the global semiconductor industry. 

In January 2025, the company announced a SG$7 billion (RM22.79 billion) investment to build a HBM advanced packaging facility in Singapore to meet growing AI data centre demands. 

Around the same time, its consumer brand Crucial launched the P510 SSD, offering high-speed Gen5 NVMe performance for gaming and applications. 

In December 2024, Micron received US$6.165 billion from the US government under the Chips and Science Act to boost chip production, creating an estimated 20,000 jobs in New York and Idaho. 

Despite missing revenue projections for late 2024, Micron Technology’s stock rose 18% in early 2025, driven by advancements in HBM and data centre demand. 

Earlier in April 2024, Micron secured a US$6.1 billion Chips Act grant for a semiconductor campus in New York and a fab in Idaho. This followed its 2023 release of HBM3E memory, which improved performance by 50% with speeds of 9.6 Gbit/s per pin. 

On the local front, reports emerged in June 2024 that Micron Technology is considering establishing HBM production capacity in Malaysia, where it currently operates chip testing and assembly plants. 

This potential expansion is aimed at capitalising on the growing demand for AI-driven memory solutions, solidifying Malaysia’s role in Micron Technology’s global operations. 

Although it has not released any figure on its target for 2025, Amarjit assured that Micron Technology is focused on developing market-leading products with superior capacity, speed and energy efficiency, in order to stay ahead in the “highly competitive” and “brutal” industry. 

In December 2024, Micron Technology reinforced its strategic position in the AI chip market with a US$2 billion investment in Penang to enhance its manufacturing capabilities. 

This investment reflects the company’s commitment to meeting the increasing demand for high-performance components essential to AI systems, a market that continues to see intensified competition. 

These developments underscore Micron Technology’s commitment to growth, innovation and maintaining its leadership in the global semiconductor industry during the post-Covid era. 

Global Vision, Local Commitment

As Micron Technology continues to invest billions globally in R&D and manufacturing, Malaysia remains a critical part of its vision. 

The company has announced plans for further expansions, including enhanced manufacturing capacity and increased R&D efforts globally and regionally. 

“Micron Malaysia embodies the perfect balance between global innovation and local impact,” Amarjit said. 

The company’s dual focus on technological excellence and social responsibility sets it apart in the semiconductor industry. 

“We are here to do business, but we are also here to make a difference,” he added. 

The visit offered a glimpse into how Micron Malaysia is shaping the future of technology while staying rooted in its values. 

From groundbreaking AI advancements to meaningful community initiatives, the company is not just driving progress — it is building a legacy. 

Source: The Malaysian Reserve

Micron Malaysia powers AI revolution with sustainability, local impact

Fraser and Neave Holdings Bhd (F&N) remains committed to driving growth, enhancing route-to-market capabilities and optimising operational efficiencies while staying agile in response to market dynamics and geopolitical developments.

In a filing with Bursa Malaysia, the group said progress on the integrated dairy farm project in Gemas is on track, with Phase 1 infrastructure development advancing steadily in preparation for the arrival of livestock.

“Additionally, the development of the dairy manufacturing plant in Cambodia is progressing well to strengthen the Group’s presence in that market.

For the first quarter ended Dec 31, 2024 (1Q25), F&N said its revenue rose by 4.3% to RM1.39bil, mainly driven by festive sales in Malaysia and recovery in the domestic Thai economy, supported by tourist arrivals and increased sales in the Indochina market due to the availability of fresh milk supply.

Net profit in 1Q25 dipped marginally to RM169.02mil from RM170.74mil a year earlier.

Meanwhile, group operating profit for 1Q25 grew by 16.1% to RM243mil. “This growth is attributed to higher profits from F&B Malaysia and F&B Thailand, partially offset by start-up costs associated with the integrated dairy farm. Operating profits were bolstered by improved sales mix and lower input costs.”

F&N said the group’s strong performance in the first quarter was driven by festive sales in Malaysia and a recovery in the domestic Thai economy, supported by tourist arrivals and revitalised sales in the Indochina market due to the availability of fresh milk supply.

“Operating profit benefited from better sales mix and lower input costs.

“However, the expiration of the board of investment incentive for F&B Thailand has led to higher tax expenses and the incurrence of withholding taxes on dividends repatriated from Thailand.”

Looking ahead, the group said it recognises several risks, including geopolitical uncertainties, volatility in raw material prices and fluctuations in foreign currency.

“While minimal impacts are anticipated from recent regulatory changes such as minimum wage increases, service tax on logistics and the 40 sen increase in sugar taxes on sweetened beverages, the group remains vigilant.”

F&N said its mid-term strategy focuses on positioning Halal packaged foods and dairy as key growth pillars, along with ongoing efforts to create synergies within the group.

“With these initiatives, the group is confident in its ability to capitalise on emerging opportunities and navigate potential challenges ahead.”

Source: The Star

F&N remains focused on growth and expansion

AS the deadline for the end of incentives for fully-imported electric vehicles (EV) edges closer, carmakers are expected to accelerate plans to localise their EV supply chain and initiate local assembly to reduce costs and maintain price competitiveness.

Four key hotspots in Peninsular Malaysia have been identifed as actively attracting EV-related investments especially from Chinese players – Perlis, Perak, Pahang and Johor.

Beyond the local original equipment manufacturers such as Perodua and Proton, Malaysia has experienced a significant influx of new players in the automotive industry in recent years, with the majority coming from China.

Many of these newcomers have announced plans to establish EV assembly operations here including for export markets. However, EV assembly in the country remains in its infancy, with most operations currently limited to SKD or semi-knocked down assembly.

CLOCK IS TICKING

The government currently offers 100 per cent import duty and excise duty exemptions for fully imported or complete built-up unit (CBU) EVs, covering both battery EVs and plug-in hybrid EVs (PHEVs).

These exemptions apply to passenger vehicles including cars, vans and motorcycles, intending to make EVs more affordable and accessible to consumers.

The exemptions for passenger EVs are valid until Dec 31 this year.

Restrictions on importing CBU EVs priced less than RM100,000 are also set to expire at the end of 2025, potentially creating a freer market for EVs, provided carmakers can compete on costs.

These CBU incentives aim to boost EV adoption and serve as a transitional measure while the local EV market matures.

An industry observer said the government plans to shift its focus to incentivising local assembly or complete knocked down (CKD) operations of EVs, emphasising domestic manufacturing and development of EV supply chains.

This will increased localisation within the EV supply chain.

“The automotive industry is transitioning, driven by the rise of EV players, with current investments focusing on downstream areas like showrooms and service centres, as well as growing interest in EV assembly,” the observer said.

Automotive analyst Shamsul Yunos said while the country is far from the final chapter of the EV transition, the opening scenes seem to favour those who have built and etensive supply chain of batteries.

They are now pivoting that massive production capability, not just towards the transition to EVs but the overall shift towards renewable energy, he added.

KEY HOTSPOTS

Maybank Investment Bank Bhd automotive analyst Loh Yan Jin said there were several companies from China exploring EV investments in Perlis, particularly in the Chuping area near Padang Besar.

The Chuping Valley Industrial Area has been positioned as a hub for green industry, halal industry including pharmaceuticals, EV and renewable energyy.

“The EV industry, in particular, could benefit from the state’s proximity to Penang and Kedah, where the semiconductor industry is concentrated, as this provides an advantage in terms of logistics for the EV supply chain,” Loh said.

Perak, meanwhile, is positioning itself as a key player in the high-tech industrial sector, focusing on developing industrial park like the AHTV to attract EV assembly plants and battery recycling facilities.

The state is also leveraging its rich natural resources, particularly non-rare earth elements (NR-REE), by prioritising the export of value-added products such as magnets and components for EVs, rather than raw materials.

“One example of this is Perak’s exploration of a potential collaboration with Star Group Industries, a leading South Korean company with expertise in producing downstream products from REE.”

Additionally, Loh said, EcoNiLi Battery New Energy had launched a battery recycling plant in Perak in 2024, marking the first phase of its investment at RM50 million, with plans to invest another RM100 million in the second phase this year.

For Pahang, it is rapidly emerging as a key hotspot for EV investments, largely driven by the Malaysia-China Kuantan Industrial Park (MCKIP).

The park has become a magnet for Chinese EV manufacturers, bolstered by its strategic location near Kuantan Port, which facilitates seamless import and export operations.

To further attract investments, the state government offers attractive tax incentives for green technology, reinforcing its commitment to supporting the EV sector.

Currently, several key battery materials suppliers are already operational in MCKIP.

They include Camel Power (a supplier of batteries for ICE vehicles) and Elektrisola Group (which manufactures high-quality, fine, and ultra-fine enamelled copper wires used in automotive and industrial electronics).

Graphjet Technology, a producer of graphene and graphite which are critical materials for EV batteries and semiconductors, also plans to expand its presence in Kuantan.

In addition to these developments, Pahang is home to significant infrastructure such as the Pahang Automotive Park and the Hicom Automotive Manufacturers Plant, where several prominent automotive brands are assembled.

Notably, Mercedes-Benz began producing its all-electric EQS model at this plant in the first quarter of 2023, marking the first fully electric Mercedes EQ to be assembled in Malaysia.

Loh said the completion of the East Coast Rail Link (ECRL) by 2027 is expected to further enhance Pahang’s logistics network, solidifying the state’s attractiveness for investments.

“Perodua, for instance, plans to establish a logistics and vehicle assembly hub on 8.9 hectares in the East Coast Economic Region, utilising the ECRL’s Paya Besar Station for vehicle distribution within the region.”

The hub will also leverage Kuantan Port for shipping vehicles to Sabah and Sarawak, Loh added.

Ongoing discussions between East Coast Economic Region Development Council and Perodua are expected to culminate in finalised plans by 2025.

As for Johor, Chinese companies are in negotiations to establish a large scale EV manufacturing facility in Johor, aimed at producing 10,000 EVs monthly for export to the African market.

The project is evaluating three potential locations: Tanjung Langsat in Pasir Gudang, Tanjung Piai in Pontian, and Pengerang in Kota Tinggi.

Once operational, the plant is expected to generate over 10,000 jobs for the local workforce.

Source: NST

Carmakers to boost EV plans

SINCE 2010, the number of Malaysian companies focusing on factory automation has doubled, with the top 10 firms now boasting a combined valuation exceeding RM25.8 billion, according to Malaysian Investment Development Authority.

Automation has proven to be a game-changer, reshaping how industries approach operation scalability, production optimisation, engineering efficiency, and sustainability. It is especially important for Malaysia’s manufacturing sector, which is projected to grow by 4.5% next year, according to the recent Economic Outlook 2025 report from the Finance Ministry.

With the rise of Industry 4.0 or Smart Factory technologies, manufacturers around the world are also increasingly adopting Internet of Things (IoT), artificial intelligence (AI), and robotics to create more interconnected and intelligent systems that optimise resource management and enhance decision-making processes. To support local manufacturer’s growth, the Malaysian government has set a target to convert 3,000 factories into smart factories by 2030 under the New Industrial Master Plan (NIMP) 2030.

However, the manufacturing sector faces unique hurdles in embracing digital transformation. According to industry experts, one of the challenge lies with IT. Many legacy systems may include outdated or unnecessary software licences that are no longer relevant in today’s digital landscape. The drive towards sustainability adds another layer of complexity.

With environmental concerns at the forefront and regulations in place, manufacturers are compelled to weave sustainable practices into the very fabric of their operations. This shift is not merely about compliance; it’s about securing a competitive edge and ensuring viability in a market that increasingly values environmentally conscious practices.

Enter universal automation — a transformative approach that revolutionises the integration of digital technologies in manufacturing. This strategy employs a modular, plug-and-produce software ecosystem, reminiscent of an app store for industrial applications, which significantly simplifies the adoption of the best available solutions. This not only enhances operational flexibility but also reduces overhead costs, positioning universal automation as a key enabler in the digital transformation of manufacturing.

Universal automation simplifies the integration of new technologies into existing systems, offering a seamless approach that allows manufacturers to enhance their operational frameworks without the need for a full-scale overhaul. This streamlined integration preserves existing investments while accelerating the adoption of innovative practices.

A key component of this strategy is the decoupling of automation software from hardware, as exemplified by the adoption of the IEC 61499 standard. This standard introduces an open, event-driven architecture for distributed control systems (DCS), enabling seamless integration across diverse equipment from various vendors.

Platforms like Schneider Electric’s EcoStruxure Automation Expert, which are built on this standard, represent the first brand-agnostic software solutions. They facilitate digitalisation while minimising costs and operational disruptions. By embracing this software-defined approach, the industrial sector can overcome the limitations of traditional, closed automation systems. This shift fosters greater adaptability, allowing companies to innovate and evolve more rapidly in an increasingly interconnected and dynamic global environment.

The scalability and flexibility inherent in universal automation solutions are also vital for manufacturers aiming to grow and adapt over time. These solutions can be tailored to expand and evolve in tandem with a company’s changing needs, offering a durable advantage in a rapidly advancing technological environment.

Universal automation also directly addresses the prevalent skills gap in the industry. By introducing user-friendly interfaces and streamlined processes, these systems reduce the reliance on highly specialised training, allowing existing employees to upskill and adapt to new technologies more effectively.

Driving sustainability through universal automation is one of its standout benefits, particularly its potential to significantly enhance energy efficiency. By optimising the operational dynamics of machines and systems, universal automation ensures that energy consumption is minimised, reducing the environmental footprint associated with manufacturing processes.

Beyond energy management, universal automation excels in resource management. It enables precise control and monitoring of material use, promoting the efficient utilisation of resources and minimising waste production. This precision not only helps conserve valuable materials but also leads to cost savings, creating a dual advantage for manufacturers committed to sustainable practices.

Moreover, the integration of universal automation generates a vast pool of data from daily operations. This wealth of information provides deep insights into every aspect of the manufacturing process, enabling manufacturers to make more informed decisions. By analysing this data, manufacturers can refine their energy usage, optimise material consumption, and improve waste management practices.

As Malaysia continues its digital transformation journey, the integration of universal automation into manufacturing practices is becoming increasingly crucial. This technological integration, coupled with a robust emphasis on sustainability, is setting the stage for businesses to not only meet but exceed industry standards.

Universal automation is not about replacing the human workforce but enhancing it, fostering an environment where technology and human ingenuity co-exist to propel the manufacturing sector towards a more efficient, sustainable, and innovative future.

This article is contributed by Schneider Electric Malaysia Industrial & Process Automation business vice-president Ng Wei Jie.

Source: The Sun

Automation key enabler in digitalisation of manufacturing

MANUFACTURERS are urged to be open to transformation and adopt new technologies to keep up with market demands, especially with the implementation of the Johor-Singapore Special Economic Zone (JS-SEZ).

South Johor Foundry and Engineering Industries Association president Lim Kok Kiong said industry players must be ready to take on new, inevitable challenges now that the joint agreement had been signed by Malaysia and Singapore.

“Alongside challenges, the industry will face new opportunities, especially in semi-conductor and high-end manufacturing fields.

“The opportunities include attracting high-volume investments, establishing strategic partnerships with Singapore and international companies, expanding export opportunities and nurturing skilled talents to help the industry grow and keep up with market demands,” he said.

As for challenges, Lim said the industry should also look out for a difference in regulation and industry standards between two countries, which could affect cross-border cooperation.

“Our association has come up with a strategic plan, which includes formulating industry development strategies, market segmentation and strengthening our cooperation with the government in order to create favourable conditions for the industry’s participation in the JS-SEZ,” he said.

“We have also suggested collaborations with infrastructure projects related to the JS-SEZ, especially in the manufacturing of semi-conductors and precision equipment to help local firms improve their standards.”

He added that the association had always encouraged industry players to adopt technologies such as robotic automation, artificial intelligence and the Internet of Things to improve production and efficiency.

Lim said industry players were also encouraged to implement green initiatives to meet international standards for environmentally friendly products.

“The association will hold a meeting with our members soon to discuss the latest developments under the JS-SEZ and related plans.

“This is to provide them support and help them seize available opportunities,” he added.

On Jan 7, Prime Minister Datuk Seri Anwar Ibrahim and his Singaporean counterpart Lawrence Wong witnessed the exchange of the joint JS-SEZ agreement, which took place during the 11th Malaysia-Singapore Leaders’ Retreat in Putrajaya.

Real Estate and Housing Developers’ Association (Rehda) Johor branch chairman Lindy Tan said the JS-SEZ would create exciting opportunities, especially in the property sector.

“With the anticipated influx of investments, there will be a natural rise in demand for top-tier infrastructure, housing and commercial spaces.

“This is a chance for developers, policymakers and private stakeholders to work together to ensure that growth is not only rapid but also sustainable and inclusive,” she said.

Tan said the signing of the agreement also marked a new chapter in strengthening the state’s position as a key regional hub for investment, innovation and sustainable growth.

“I am heartened by the commitment of both governments to upgrading Johor’s public transport system and introducing meaningful incentives for businesses and residents.

“These efforts will not only boost the zone’s appeal to investors but also significantly improve the quality of life for the people of Johor.”

Tan also said Rehda Johor was ready to support the initiative by engaging with all stakeholders to help shape the future of the JS-SEZ.

“Together, we can ensure that this project becomes a long-term success story, driving innovation, economic prosperity and development for Johor and the region as a whole,” she said.

Source: The Star

Prepare to innovate, manufacturers told

Urban Empire Builders (UEB) Sdn Bhd achieved a significant milestone with the soft opening of its RM20 million Kuching Urban Transportation System (KUTS) Precast Concrete Facilities, marking a leap forward for Sarawak’s construction sector.

Deputy Minister of Public Health, Housing and Local Government Datuk Michael Tiang, who officiated the opening ceremony, lauded the facility as a pivotal development for the KUTS Red Line project and Sarawak’s infrastructure ambitions.

“Sarawak has long been a beacon of growth and opportunity in Malaysia. With its vibrant industries and rich natural resources, under the visionary leadership of our Premier, Datuk Patinggi Tan Sri Abang Johari, Sarawak continues to embark on ambitious development projects, and the demand for sustainable, innovative, and efficient construction solutions has never been greater.

“Today, we are proud to see UEB respond to this call with the establishment of this state-of-the-art facility. This plant represents more than just a physical structure, it is a symbol of progress, innovation, and commitment. With advanced technologies, high-quality production capabilities and environmentally friendly practices, this facility will not only support the growing infrastructure needs in Sarawak but also set new standards in the precast concrete industry.

“In other words, this new precast concrete facility will be a game-changer, especially for constructing the Red Line Package in the KUTS,” said Tiang.

He said this in his officiating speech at the soft opening of the KUTS Precast Concrete Facilities and Chinese New Year Celebration at the KUTS Redline Precast Plant here today.

Meanwhile, in his welcoming remarks, UEB director TS Mike Chin Yuan Tai shared that in December 2023, UEB formed a consortium with Sri Datai Sdn Bhd and CHEC Construction (M) Sdn Bhd, successfully bidding for the KUTS Red Line Package.

The project involves constructing a 12.3 km stretch, including a 6.3 km elevated section.

“UEB has been tasked by the consortium to design and build state-of-the-art precast concrete facilities for all the pier caps, beam girders, and parapet walls required for the elevated sections,” he said.

Chin emphasised the scale of the facilities, which spans 12 acres and includes an integrated project management camp featuring a project management office, staff quarters, worker quarters, a canteen, landscaped gardens, and a recreation hall.

The facilities are equipped with four heavy-duty gantry cranes ranging from 20 to 120 tonnes, a fully automated rebar cutting and bending machine, 22 production lines for prestressing girders with a 1,200-ton capacity, 14 production lines for pier caps, T-beams, and portal frames, as well as a 90m³/hour capacity concrete batching plant and storage for 400 beam girders and 100 pier caps.

Chin also highlighted that the plant is 100 per cent owned by Sarawakians, underscoring local contractors’ ability to develop and adopt advanced construction technologies.

He expressed hope that the Sarawak government would continue supporting local contractors by providing opportunities and sustainable projects, enabling them to compete locally and internationally.

“UEB is also thankful to the Premier and his vision to develop Sarawak’s infrastructure using new construction technologies, as well as Sarawak Metro’s policy of prioritising local contractors for KUTS tenders,” Chin added.

The event featured a plaque-signing ceremony, a ribbon-cutting session, and a guided tour of the facilities.

Guests were also treated to cultural performances, including a lion dance and “Cai Qing” presentation, a Yee Sang prosperity toss, and a buffet lunch.

The celebration concluded with appearances by the ‘God of Prosperity’, a lucky draw, and a singing session, reflecting the festive Chinese New Year spirit.

Also in attendance were Balingian assemblyman and Sarawak Housing Development Corporation chairman Abdul Yakub Arbi, Kuching Chinese General Chamber of Commerce and Industry deputy president Datuk Wee Kok Hui, Sarawak Metro project director Zafrin Zakariah, Sri Datai Group of Companies project director Soo Jin Ai, CHEC Construction (M) Sdn Bhd project manager Liu Tao, as well as business associates, bankers, suppliers, and sub-contractors.

Source: The Borneo Post

Urban Empire Builders launches largest precast concrete facility in Sarawak

Cahya Mata Cement Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Sarawak Bhd, expects to double its clinker production capacity with the development of a new facility, Clinker Line 2, in Mambong here.

The ambitious project is set to enhance cement production capacity in Sarawak and meet the state’s growing infrastructure demands for the next 15 years, Cahya Mata Cement said in a statement on Thursday.

“Clinker Line 2 will take approximately 24 months to complete. It will incorporate state-of-the-art features to enhance both environmental performance and energy efficiency,” it said.

The new line will be developed in collaboration with Sinoma Industry Engineering (M) Sdn Bhd, following a technical consulting agreement signed in November 2023, which covered the design and subsequent construction of the clinker line, as well as optimising the existing clinker production facility.

Once completed in March 2027, Clinker Line 2 will have the capacity to produce an additional 6,000 metric tonnes of clinker daily, effectively doubling Cahya Mata Cement’s annual production capacity from 900,000 to 1.92 million metric tonnes.

The new facility will feature a waste heat recovery system capable of generating up to 6.0 megawatts of power, an advanced dust filtration system to reduce emissions by 50%, and equipment designed to lower both energy consumption and carbon dioxide emissions.

Furthermore, by utilising locally available alternative raw materials and fuels, the facility will minimise reliance on fossil fuels, reinforcing Cahya Mata Cement’s position as a leader in green cement production.

During its construction phase, the Clinker Line 2 project is expected to require up to 500 workers at its peak, providing a substantial boost to local employment, and creating opportunities for local businesses throughout the supply chain.

Once operational, the new facility will enable Cahya Mata Cement to meet the growing demand for cement in Sarawak, with a projected annual output of 2.4 million metric tonnes.

Cahya Mata Cement acting head Choong Ju Tang said the company is committed to providing a sustainable supply of high-quality cement, backed by a strong brand and a solid foundation built over more than 50 years of contributing to Sarawak’s development.

“Once the Clinker Line 2 project is approved and completed, we will be well-positioned to meet and exceed the construction industry’s demands well into the future,” he added.

Source: Bernama

Cahya Mata Sarawak’s unit expects to double clinker production with new facility

HP Inc. Malaysia has launched HP Malaysia Manufacturing (HPMM) transformation centre in Batu Kawan, Penang to drive Industry 4.0 and foster sustainable manufacturing practices.   

HP Malaysia managing director Alex Tan said the 4,639-square-foot facility embodies the company’s vision for the future of advanced manufacturing, powered by fourth industrial revolution technologies such as robotics, automation to predictive analytics.

“For HP, the facility represents our commitment to being future ready, driving innovation, embracing sustainability and preparing our workforce for the challenges of tomorrow.

“For Malaysia, the transformation signifies opportunity. It strengthens the country’s position as a global leader in the micro electrical mechanical system (MEMs) space, and aligns with the government’s industrial transformation roadmap including initiatives such as Industry4WRD and the New Industrial Master Plan 2030,” he said in a statement.

Since its establishment in 2016, HPMM has employed 1,200 highly skilled Malaysian professionals.

HPMM plays a critical role in HP’s global manufacturing ecosystem, producing and supplying inkjet cartridges to 175 countries worldwide, and is recognised as one of the world’s largest manufacturers of MEMS.  

HPMM general manager Dominic Chew said the company is also committed to sustainability and its impact on the community

 “At HPMM, initiatives like our solar photovoltaic arrays and zero waste operations team reflect our determination to reduce our environmental footprint.

“These efforts not only align with Malaysia’s sustainability goals but also with HP’s global vision of carbon neutrality and zero waste operations by 2025,” said Chew.

Source: NST

HP launches manufacturing transformation centre in Penang to drive Industry 4.0 

Proton Holdings Bhd (Proton) is boosting the production of the e.MAS 7 electric vehicle (EV) by an additional 3,000 units to cope with the high demand from customers nationwide.

Deputy chief executive officer Roslan Abdullah said the car maker previously targeted to secure 3,000 bookings for the vehicle within six months, but it surpassed the target in less than a month.

“Demand is rising, reflecting the public’s acceptance of EV cars.

“I am confident that in the next three or four years, people will scramble to use EVs and move further away from buying petrol or diesel vehicles,” he told a press conference after the launch of the Proton EV showroom at JM Otomobil (EV) in Wakaf Siku here today.

Roslan said the target group for the EVs comprises those who are interested in the latest technology.

“The price (of the EV) is not much different than that of the Proton X50 or X70. What is important is the country’s move towards zero carbon mobility,” he said.

The Proton e.MAS 7, launched by Prime Minister Datuk Seri Anwar Ibrahim on Dec 16 last year, is Malaysia’s first EV in the drive towards sustainability and green technology innovation.

Two variants are offered — Prime (priced starting from RM109,800) and Premium (RM123,800).

Proton’s first EV boasts a 12-in-1 electric propulsion system, a 16-speaker audio system, and ample legroom with 33 storage compartments.

Source: Bernama

Proton e.MAS 7 production to be boosted amid strong demand

MALAYSIA’s electric vehicle (EV) market surged nearly 80 per cent year-on-year (YoY) to more than 28,000 units in 2024, with China’s BYD, Tesla and BMW emerging as the top three brands. 

Analysts expect another strong year for the EV segment in 2025 driven by new model launches particularly from national car makers Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd.

Thriving ‘Green’ Vehicles

According to the Road Transport Department data, total EV registrations in the country  expanded 79 per cent to 28,048 units, representing 3.3 per cent market penetration last year.

The growth was primarily driven by the influx of multiple new EV models and the entry of new players into the Malaysian market, said CIMB Securities analyst Mohd Shanaz Noor Azam, who estimates that the Malaysian automotive market now boasts over 27 EV marques.

BYD, Mohd Shanaz said, leads the market with nearly 31 per cent share, fuelled by the introduction of three new models: the Seal, M6, and Sealion.

Tesla follows with an 18 per cent market share, driven mainly by its flagship models, the Model 3 and Model Y. Meanwhile, BMW ranks third with a seven per cent market share.

“However, BMW’s EV registrations dropped 39 per cent YoY to 1,975 units in 2024, primarily due to increasing competition in the EV space.”

Proton unveiled its first EV, the eMAS 7, in December 2024, receiving over 2,500 bookings within weeks of its launch. Perodua is set to debut its flagship EV in the sub-RM100,000 segment by the fourth quarter of 2025.

“The government’s policy of setting a minimum average selling price of RM100,000 for nonnational EVs is expected to provide a competitive edge for national brands,” Mohd Shanaz said.

Although EVs from national brands are likely to boost EV penetration this year, CIMB Securities expects rising competition within the segment, especially from Chinese players as duty exemptions for imported EV models are set to end in 2026, after which domestic assembly will take precedence.

Easing Industry Sales

The EV may continue to thrive but the same cannot be said about the overall industry sales.

CIMB Securities expects a total industry volume (TIV) of 755,000 units for 2025. This will be equal to a seven per cent YoY decline over the estimated 814,000 units sold in 2024.

The firm attributed this to potential headwinds, including the possible removal of the RON95 petrol subsidy in mid-2025 and a likely revision of the open market value (OMV) calculation method.

“Despite these challenges, we anticipate resilient demand within the sub-RM100,000 segment, which remains dominated by national brands and select entry-level models from Japanese marques,” Mohd Shanaz said.

“In 2024, we estimate that sub-RM100,000 models accounted for at least 73 per cent of Malaysian TIV, with national brands commanding over 80 per cent of this segment, while Japanese and Chinese marques represented the remaining 20 per cent,” he added.

The firm expects demand for sub-RM100,000 models to remain robust in 2025, supported by first-time car buyers and an accommodative interest rate environment maintained by Bank Negara Malaysia.

Additionally, the government’s plans to retain fuel subsidies for 85 per cent of RON95 users, as outlined in 2025 Budget, are expected to maintain affordability for the mass-market segment. 

“As a result, we expect national brands to maintain their dominance, capturing a projected 64.5 per cent market share, compared with 35.5 per cent for non-national brands in 2025,” Mohd Shanaz said.

Source: NST

Another strong year for EVs in Malaysia

After successfully producing and exporting methanol, Sarawak Petchem Sdn Bhd is now setting sights on another new product – green methanol.

Sarawak Premier Tan Sri Abang Johari Tun Openg set the wheels in motion when he performed the ground-breaking ceremony for the green methanol plant project at Tanjung Kidurong, Bintulu last week.

State-owned Sarawak Petchem chairman Tan Sri Abdul Aziz Husain said green methanol could be used as a sustainable marine fuel for the shipping industry, contributing to a significant reduction in carbon dioxide emissions, which is crucial in addressing climate change.

“This green-methanol project is an important step in our journey towards sustainable energy solutions. With this initiative, we are not only addressing the energy needs of today but also moving towards a more sustainable and climate-resilient future,” he added.

Abdul Aziz said the project would employ water electrolysis technology powered by renewable energy, along with captured carbon dioxide as feedstock in the synthesis of methanol.

Lauding Sarawak Petchem for embarking on the green methanol plant project, Abang Johari said this would serve as a global model of Sarawak’s active participation in shaping the transition to green energy.

“I just came back from Japan and Japanese firms need green energy sources to power ships in an effort to mitigate carbon emission, and they are opting to use methanol or ammonia, particularly green ammonia.

“We know that green ammonia is combined with carbon. By mixing carbon with hydrogen produced using renewable energy, like solar and hydro, we can produce green methanol,” he added.

At the event, the premier also witnessed the official departure of 20,000 tonnes of methanol from Sarawak Petchem in two vessels to China from the Sarawak Methanol Complex in Tanjung Kidurong.

Sarawak Petchem is Malaysia’s second-largest methanol producer after Petronas Chemicals Group Bhd.

According to earlier media reports, some Rm7bil had been invested in the Sarawak Methanol Complex project.

The methanol plant, which was built by South Korea’s Samsung Engineering Co Ltd, has an annual production capacity of 1.75 million tonnes.

The plant is expected to become a catalyst for future growth of the downstream oil and gas sector in Bintulu.

Meanwhile, Sarawak is expected to partner Japanese investors in a joint venture to produce ammonia and hydrogen.

A memorandum of understanding on the partnership is due to be signed in May.

Abang Johari said the planned project will produce hydrogen using the methanol-to-hydrogen process and the cyclohexane process to generate liquid hydrogen for energy.

“Additionally, hydrogen,when mixed with carbon, will produce synthetic gas, which can also serve as a new energy source.

“Japanese Prime Minister Shigeru Ishiba has asked Sarawak to collaborate with Japan to produce ammonia, and we will further use feedstock hydrogen,” he said during a townhall session here last week.

The event marked Abang Johari’s eighth anniversary as Sarawak premier.

Prime Minister Anwar Ibrahim and Abang Johari had held talks with Shiba on various issues, including transforming Sarawak into a regional energy hub, during the latter’s official visit to Malaysia recently.

And according to Deputy Primer Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof, during the Anwar-shibaabang Johari meeting, they had discussed and jointly committed to Sarawak becoming a centre for the development of hydrogen, which will be exported not only to Japan but also other regions as well.

Japan has pledged to invest in Sarawak’s hydrogen-energy sector.

Fadillah said Sarawak’s advancement in hydrogen research has attracted investment interest from countries beyond Japan and South Korea, adding that this would help to position Sarawak as a potential primary hub for the hydrogen economy in Asia.

Anwar had expressed hope that clean hydrogen energy and decarbonisation project between Sarawak Economic Development Corp, Petroleum Sarawak Bhd (Petros) and a Japanese consortium could be facilitated by May this year.

The consortium comprises Japan Petroleum Exploration Co Ltd, GC Holdings Corp and Kawasaki Kisen Ltd.

On Feb 26, 2024, Petros, Petronas CCS Ventures Sdn Bhd and the Japanese consortium signed a Storage Site Agreement for the depleted M3 oilfield, off Sarawak.

The agreement not only enables the feasibility studies of the carbon dioxide storage sites, starting with the depleted M3 field, but also the planning of carbon dioxide storage sites, including onshore terminals and transportation pipelines as well as assessment of its technical and commercial feasibility.

Source: The Star

Sarawak sets sights on green methanol

Malaysia is gearing up to launch its second chip design park less than a year after establishing the first in Selangor, as it seeks to solidify its global semiconductor supply chain position.

Prime Minister Datuk Seri Anwar Ibrahim said Malaysia was establishing itself as a prime mover in data centres and artificial intelligence among Asean countries while advancing efforts to explore the myriad possibilities of cryptocurrency.

However, he said Malaysia must remain focused on progress rather than celebrating short-term achievements.

“Recently, we launched our National Semiconductor Strategy, which earmarks game-changing incentives and investment to make Malaysia indispensable to the global semiconductor supply chain.

“(Malaysia) is already the world’s sixth largest exporter of semiconductors and is now aiming to move further up the value chain through a targeted focus on front-end activities.

“And we are hitting the ground running: in the coming weeks, we will launch our second chip design park less than a year after our first,” he said during his lecture entitled “The Adaptive Edge: Malaysia’s Global Strategy in an Uncertain Era” at the London School of Economics and Political Science today.

Anwar, who is also finance minister, said that while Malaysia is moving forward in semiconductor development, it is also making efforts to do this sustainably.

“Malaysia is committed to moving away from existing conventional power generation, increasing renewable energy composition to 70 per cent of the total generation capacity by 2050.”

Malaysia previously launched its first semiconductor integrated circuit (IC) design park in Puchong as part of Malaysia’s plans to move up the value chain in the semiconductor industry and “Made by Malaysia” ambitions.

The Malaysia Semiconductor IC Design Park, set up in collaboration with the federal government, international semiconductor firms, and venture capitalists, aims to position Malaysia as a potential powerhouse in the global IC design industry.

The strategic initiative is designed to leverage Malaysia’s technological capabilities and resources, foster innovation, and advance the country’s reputation in high-tech manufacturing and design.

The park site was meticulously chosen after an extensive evaluation process among the locations in Klang Valley.

Anwar: Malaysia solidifying global semiconductor position with 2nd chip design park

NexV Manufacturing Sdn Bhd (NMSB) and Global NEV Technology Sdn Bhd (GNEV) have inked a memorandum of understanding (MoU) to explore strategic collaborations in the assembly and manufacturing of new energy vehicles (NEVs) in Malaysia.

A joint statement said the collaboration aims to enhance the NEV ecosystem in Malaysia, and will initially focus on knocked-down operations while GNEV intends to enter into a contract assembly arrangement with NMSB.

“The primary objective of this MoU is to establish a framework for collaboration between NMSB and GNEV in developing Malaysia’s green technology facility dedicated to manufacturing and assembling NEVs.

“Specific activities under the MoU will be detailed in a definitive agreement, which both parties aim to sign by mid-February 2025,” it said.

Once a definitive agreement is signed, the collaboration may see its first commercial electric vehicle roll out from the NMSB’s production line as early as the first quarter of 2026 (1Q 2026), the statement said.

NMSB, a joint venture between Careplus Group Bhd and GoAuto Group Sdn Bhd, aims to lead Malaysia’s transition to sustainable and green automotive technology by constructing the country’s first dedicated green technology manufacturing facility.

The NEV plant in Chembong, Negeri Sembilan, is set to open in 2Q 2025, and will support Malaysia’s shift to sustainable mobility while boosting the economy and creating jobs in the region.

Source: Bernama

NexV Manufacturing, Global NevTechnology ink partnership for commercial EV assembly

Maintenance, repair and overhaul (MRO) services are poised to become the primary area of collaboration between Malaysia and the United States (US) in the aerospace sector, according to the US International Trade Administration’s international trade specialist Stefanie Merchant.

Merchant emphasised the critical role of engines and engine parts in the US aerospace industry, and therefore, Malaysia could play a key role in meeting this demand.

“The opportunities extend to general parts for fixed-wing aircraft, encompassing components as varied as nuts and bolts to larger structures,” she said during the SelectUSA Webinar: Investment Opportunities in the US Aerospace Market on Wednesday.

She also called on Malaysian companies to engage with major US aerospace manufacturers to understand their supply chain needs, to pave the way for strategic partnerships.

Merchant further pointed out that MRO services in the US were expecting unprecedented demand, with the growth being supported by the integration of digital tools and artificial intelligence, to streamline processes such as blade inspection and maintenance record management.

“The need for skilled labour in this sector is also rising to meet the growing workload,” she noted.

Moreover, Merchant said the increasing demand for parts to support fixed-wing aircraft production, including landing gear, and the robust market for engine MRO services in North America, is expected to account for 22.5% of global demand this year, which presents further opportunities for collaboration.

Additionally, she pointed to broader growth in commercial markets with dual defence applications, including unmanned aircraft systems and propulsion systems, in which demand has surged due to spillover effects from defence to commercial applications. 

Meanwhile, National Aerospace Industry Corporation (NAICO) Malaysia chief executive officer Prof Shamsul Kamar Abu Samah said the entity is heavily investing in developing future-ready professionals for the aerospace sector in Malaysia. 

He said this mission was in line with the New Industrial Master Plan (NIMP) 2030 to position Malaysia as a global aerospace hub, while focusing on innovation, fostering strategic partnerships, and ensuring sustainable growth in this critical industry.

Malaysia’s aerospace exports reached an impressive RM4.87 billion, while imports stood at RM10.93 billion from January to October 2024.

“We have shown resilience and growth with key markets like Asia Pacific and Europe, driving demand for our aircraft parts and components.

“This is a testament to Malaysia’s robust aerospace supply chain, and our growing reputation on the global stage,” he added.

Source: Bernama

MRO services to drive Malaysia-US collab in aerospace sector, says trade specialist

Sarawak aims to expand its involvement in the aerospace sector by collaborating with a company in Tokyo, Japan, to produce textiles designed for astronaut use.

Sarawak Premier Tan Sri Abang Johari Openg emphasised the importance of incorporating low-carbon elements in the textile production process, aligning with the state’s green economy agenda.

“We prioritise low-carbon methods in producing textiles from liquid gas used by astronauts.

“Currently, we are working with a company in Tokyo to develop low-carbon materials based on chemicals to create the textiles. Perhaps one day, astronaut suits labelled ‘Made in Sarawak’ will become a reality,” he added.

Abang Johari said this in response to a question during a town hall session, Eight Years With The Honourable Premier of Sarawak, last night.

During the session, Abang Johari expressed his vision of transforming Sarawak into the “Norway of the East” by fostering a stable economy and efficiently managing its resources.

He said Norway shares similarities with Sarawak in its strengths in oil and gas while also excelling in clean energy and advanced technology.

“If there is an economic crisis in Europe, Norway remains unaffected because of its effective resource management. This is why I envision Sarawak becoming the Norway of the East,” he stated.

Abang Johari emphasised that achieving this goal requires swift action and diligent efforts to elevate Sarawak to the highest level of progress.

“We must strive to reach that standard and work tirelessly. That is why I am focusing on advancing efforts in various fields, including education and engineering,” he added. 

Source: Bernama

Sarawak collaborates with Japan to produce textiles for astronauts

NEGRI Sembilan, on track towards attaining developed-state status and progressively moving towards a digital-centric economy, has outlined plans to attract more investments to further boost revenue and achieve its vision to become a prosperous, inclusive and sustainable state by 2045.

Taking advantage of its strategic location and proximity to the country’s main airports and seaports, the state administration plans to open more industrial areas especially the greentech and high technology industries to achieve this.

Negri Sembilan industrialisation and non-Muslim affairs committee chairman Teo Kok Seong said the state government has taken a proactive approach and hopes to open at least 10 new industrial areas in the state in stages in the coming years to meet this objective.

“As of now, we have more than 50 industrial areas in Negri Sembilan with proper infrastructure facilities.

“Of these, only the Techpark@Enstek phase 2 in Bandar Enstek and Springhill Industrial Park phase 1 and 2 in Port Dickson still have lots to be sold,” he said, adding that at the other industrial areas, there were only ready-built factories or godowns that were available for sale or rent to interested investors.

Realising that the state was quickly running out of industrial areas to cater to all types of industries, it came up with a plan to aggressively open more areas in the next four years to meet rising demand.

He said two industrial areas should start operating this year.

“The 514-acre Hamilton City Industrial Area in Nilai by Sime Darby Properties, which is the first project under the Malaysia Vision Valley 2.0 should be ready this year.

“The 100-acre Kelisa Mewah Industrial Area in Sg Gadut by Azza Mewah Sdn Bhd earmarked for light industries will also be ready for occupancy in the first quarter of this year,” he said.

Teo said the 523-acre SPD Techvalley Industrial Area in Senawang by Seri Pajam Development, being developed under the “greentech” concept in a guarded area, would be ready by 2026.

“This industrial area will be built under the Smart Sustainable Managed Industrial Park concept and is the first in South-East Asia to be awarded the Leadership in Energy and Environment Design for cities and the industry community.

“This area will also strictly comply with ESG standards,” he said.

Apart from SPD Techvalley, three more industrial areas will be opened in 2026.

The first is the 616.6-acre phase three of Techpark@Enstek at Bandar Enstek by Tabung Haji Properties.

“This particular area will focus on the halal industry hub, cleantech and high technology industries,” he said.

The next project, Teo said, is a 760-acre Vision Business Park integrated development (Parcel B) in Labu by Sime Darby Properties.

He said a section of the industrial area will be reserved to support light- and medium-scale industries.

The third, he said, was the 179-acre Springhill Industrial Area (phase 3) in Port Dickson by West Synergy Sdn Bhd which will focus on high-tech light- and medium-scale industries.

Two industrial areas that would be opened in 2027 are the 837-acre NS Semiconductor Valley in Senawang by NS Corporation.

“This investment, which will be in collaboration with the private sector, will focus on high technology industries such as electric and electronics and semiconductor,” he said.

Teo said 2027 will also see the opening of the 122-acre Sikamat Industrial Area in Sikamat by GD Holdings which will cater for the light- and medium-scale industries.

In 2028, the state will have two more industrial areas.

The first is the 2,382-acre MVV TechPark in Labu (Parcel B) by NS Corporation which will be built in collaboration with N9 Matrix Development.

“There will also be a NS Smart Park in Labu (Parcel B) by NS Corporation which is a joint venture with the private sector. The 1,281-acre area will house data centres, smart manufacturing facilities, aerospace, logistics and services industries,” he said.

On Dec 18 last year, the state government signed yet another agreement to develop an industrial park in Bukit Pelandok, Port Dickson.

The understanding between NS Corp, on behalf of the state government and SD Guthrie Bhd and Eco World Development Group Bhd will see the development of a 1,166-acre industrial park with a gross development value of RM2.95bil.

The project, to be developed over an eight-year period, will target both local and foreign investors and help create high-value jobs to further drive the state’s growth agenda.

The industrial park, will among others have industrial lots, ready-built factories and commercial properties that will cater to high-growth sectors such as aerospace, electrical and electronics, logistics and biotechnology.

Teo said the state government has also been attracting healthy investments in recent years which augurs well for its economic growth.

In 2018, the state received RM1.6bil in foreign direct investment (FDI) and another RM1.26bil in domestic direct investment (DDI). In 2019, the FDI increased to RM1.85bil while DDI saw a massive jump to RM5.1bil.

“The following year, the FDI increased further to RM3.8bil and the DDI was RM4.1bil. In 2021, we got RM3.35bil in DDI and RM2.4bil from foreign investments,” he said.

Teo said the state continued to attract investors in 2022 with foreigners pumping in RM6.58bil with another RM2.3bil from domestic investors.

History was made in 2023 when the total investments received went beyond the RM10bil mark. That year, another RM6bil came from abroad while domestic investors put in another RM4bil into the state.

For the first half of 2024, the state had already received investments totalling some RM3bil.

A proposal for the development of a special industrial cluster in the central region and the construction of a smart container port in Port Dickson will also expedite growth in Negri Sembilan and further solidify the country’s position as an investment hub.

The federal government has in principle agreed to the proposal which will include the Federal Territory of Kuala Lumpur, Selangor, Negeri Sembilan and Melaka.

Through the initiative, they hope to attract more high-quality investments in the manufacturing sector in the central region.

The Negri Sembilan Digital Economy Blueprint, a five-year strategic plan aimed at developing a foundation for a digital-centric economy, will also be realised by 2027.

The core of the blueprint rests on the establishment of a digital-powered government, a digital-driven industry, and a digital-ready society.

Within the government, priority will be placed on digitalising-related services and kick-starting the journey towards transforming key Negri Sembilan areas into smart cities.

This blueprint aims to complement the vision of the Negri Sembilan Development Plan 2021-2025 and the Negri Sembilan Structural Plan 2045 towards becoming a prosperous and sustainable state.

Source: The Star

New industrial areas to spur growth

Sarawak is exploring partnerships with international aerospace firms and research institutions to facilitate knowledge and technology exchange while driving innovation to diversity the state’s economy, said Datuk Patinggi Tan Sri Abang Johari Tun Openg.

The Premier believes that these collaborations will create high-value jobs in design, engineering and production, helping to attract and retain top talent.

“While oil and gas remain significant, we will focus on high-value industries such as biotechnology, aerospace and advanced manufacturing, which align with global trends, leveraging cutting-edge technology to enhance our competitiveness.

“The aerospace industry, in particular, holds immense growth potential. With increasing demand for satellites, drones and aerospace components, Sarawak can capitalise on its strategic location and growing infrastructure to establish itself as a hub for advanced manufacturing and innovation,” he said at the Majlis Amanat Perdana Premier Sarawak 2025 held at the Borneo Convention Centre Kuching today.

Abang Johari said he had launched the Aerospace Academy at the Centre for Technology Excellence Sarawak (Centexs) in Lundu, which is designed to equip the state’s workforce with specialised skills in areas such as aerospace engineering, drone technology, satellite manufacturing and maintenance, repair and overhaul (MRO) services.

He said such bold step signifies the state’s commitment to excel in the aerospace sector.

“Collaboration is key. We are working with universities, industry leaders and experts to create tailored training programmes for high-value sectors like advanced manufacturing, digital technology and renewable energy.

“These partnerships will ensure that our workforce remains agile and well-prepared for the emerging demands of these critical industries,” he added.

Complementing these efforts is the development of a comprehensive Industry 4.0 ecosystem that integrates advanced technology across industries and establishing new industrial zones for high-tech projects such as semiconductors, lithium batteries, data centers and green energy under the 13th Malaysia Plan (13MP), he pointed out.

He said financing and incentives for research and development will be enhanced, with collaborations involving global research institutions to foster innovation and technological advancement.

“At the core of this transformation is the commitment to building an integrated supply chain ecosystem and promoting digitalisation to enhance competitiveness. Regulatory frameworks are being streamlined to improve the ease of doing business, and significant investments are being made in workforce training and upskilling.

“Plans are also underway to establish Free Industrial Zones integrated with port development and establishing hubs for aerospace and space industries,” he added.

Abang Johari said Sarawak also recognises that the mineral mining sector remains a cornerstone to its economic strategy, and his administration aspires to unlock the full potential of this sector by advancing both upstream and downstream industries to generate greater value.

“We stay committed to sustainable mining. In June 2024, Sarawak undertook a technical study trip to Canada for better understanding of the mining ecosystem and adopting best practices in legal frameworks, new technologies and community engagement.

“Additionally, a key focus was on the rehabilitation and conservation of former mining sites to integrate sustainable practices into the sector. These efforts highlight our determination to balancing economic growth with environmental stewardship and inclusivity,” he added.

Source: The Borneo Post

Premier: Sarawak explores aerospace partnerships for economic diversification

Sarawak’s advancements in hydrogen research have attracted investment interest from countries such as Japan and South Korea, positioning the state as a potential primary hub for the hydrogen economy in Asia, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

According to Fadillah, Japan has expressed interest and committed to investing in Sarawak, particularly in the hydrogen energy sector, following Sarawak Premier Tan Sri Abang Johari Openg’s meeting alongside Prime Minister Datuk Seri Anwar Ibrahim during the recent visit by the Japanese Prime Minister Shigeru Ishiba to Malaysia.

“In that meeting, they discussed and jointly committed that Sarawak will become a centre for the development of hydrogen energy, which will be exported not only to Japan but to other regions as well. Japan has shown interest and pledged to invest in Sarawak, particularly in the hydrogen energy sector.

“Sarawak’s research in hydrogen is already quite advanced. The interest isn’t only from Japan and (South) Korea. Their technology is undoubtedly more advanced, which is why they want to invest here, making Sarawak the preferred destination for such investments,” he told reporters when met during the inaugural Inns of Court Malaysia (ICM) East Malaysia Grand Night 2025, held at Borneo Cultures Museum here last night.

The event was graced by the Yang di-Pertua Negeri Tun Pehin Sri Dr Wan Junaidi Tuanku Jaafar and his wife, Toh Puan Datuk Patinggi Fauziah Mohd Sanusi.

Fadillah, who is Energy Transition and Water Transformation Minister, said the development of hydrogen energy is expected to have a transformative impact on the economy of both Sarawak and Malaysia, with hydrogen, as a clean energy source, holding the potential to replace even nuclear energy in the future.

“Insya-Allah, our hope is to become the leading hub for the hydrogen economy in Asia,” he added.

Meanwhile, during his speech at a dinner themed ‘Diversity and Inclusivity in Nation Building,’ Fadillah encouraged the attendees, who included legal practitioners and judges from Peninsular Malaysia, Sabah, and Sarawak, as well as statesmen, corporate counsel, academicians, and law students, to join the Inns of Court Malaysia (ICM).

“Tonight, organising committee chairman, Tan Kee Heng, has requested me to remind everyone of the importance of ICM membership. If you are not yet a member, I encourage you to join. Membership fosters fellowship, goodwill, and collaboration within our profession.

“I have been convinced to become a member of ICM, so I encourage all members from Sarawak and Sabah, especially, to join. Let us come together to make legal practice a better place for all of us, where practitioners and the entire legal fraternity can unite under one roof,” he said.

Among those present at the event were ICM president Tun Arifin Zakaria and Tan, who is also ICM Sarawak executive committee member.

Source: The Borneo Post

DPM Fadillah: Sarawak’s hydrogen research draws interest, investments from Japan, South Korea

RHB Investment Bank Bhd (RHB Research) believes Malaysian technology firms will face limited impact from the US plan to tighten export restrictions on artificial intelligence (AI) chips.

“While the indirect impact is difficult to ascertain, we note that local tech supply chains are insignificant in the global AI supply chain. “We remain optimistic of a stronger 2025 on the back of a sector recovery, fuelled by firmer broad-based demand and the replacement cycle,” it said in a note today.

The US is planning to impose further restrictions on the export of AI chips, as it aims to curb the use of these chips in data centres (DC) globally, targeting both countries and companies.

According to RHB Research, if the restriction comes into effect, it will likely affect data centre (DC) expansion plans, especially outside Tier 1 countries including Malaysia.

However, it noted that most of the new AI DCs in Malaysia are US-owned. “Also, the 1.4 gigawatt (GW) capacity that is live (not all are AI DCs), under construction, or committed is well under the seven per cent threshold of the current 20.4GW DC size in the US alone (not including other Tier 1 countries), while the new 2.8GW capacity is still in the early stages. “

“Hence, we believe the impact will be more evident for Chinese DC developers/offtakers dealing with more advanced AI chips,” it said.

Furthermore, RHB Research said that the new restrictions could impact supply chains within the graphics processing unit (GPU) and central processing unit (CPU) server ecosystem.

However, only a few local companies are directly affected.

The firm added that the potential curbing of AI-related chip exports, a major growth driver for the current semiconductor upcycle, could trigger a sector-wide slowdown, impacting the entire supply chain.

Companies such as Vitrox Corp, Mi Technovation, and Pentamaster, which produce semiconductor equipment, and Frontken Corp, which supports the largest fabrication plant, may experience slower sales.

Engineering support providers and front-end equipment manufacturers, including UWC, Sam Engineering, and Coraza Integrated Technologies, could also face reduced demand.

Investors continued to selldown construction and technology stocks with the indices down 0.74 per cent and 0.76 per cent respectively.

The Bursa Malaysia construction index tracks 49 construction-related stocks, while the technology index tracks 48 technology-related stocks.

Source: NST

Malaysian tech firms to see limited impact from latest US AI chip curbs – analyst

Prime Minister Datuk Seri Anwar Ibrahim has expressed hope that the clean hydrogen energy and decarbonisation collaboration project between Sarawak Economic Development Corporation Energy (SEDCE), Petroleum Sarawak Bhd (Petros) and a Japanese consortium could be facilitated by May this year.

Petros, Petronas subsidiary CCS Ventures Sdn Bhd and Japanese consortium parties, comprising Japan Petroleum Exploration Co Ltd, JGC Holdings Corporation and Kawasaki Kisen Kaisha Ltd, signed a storage site agreement (SSA) for the M3 depleted field offshore Sarawak, Malaysia, on Feb 26, 2024.

The SSA not only enables the feasibility studies of the CO2 storage sites starting with the M3 depleted field (M3 CCS Project), but also the planning of the CO2 storage site development, including onshore terminals and transportation pipelines, as well as assessment of its techno-commercial feasibility.

Anwar, who is also the finance minister, said the collaboration is expected to succeed, particularly as Sarawak Premier Tan Sri Abang Johari Tun Openg has given his assurances regarding the project’s development, along with the support of Japan’s Prime Minister Shigeru Ishiba.

“We will hope to facilitate this as soon as possible, to be able to meet some deadlines, let’s say by May when we meet either in Tokyo or in Kuala Lumpur,” he said after the joint press remarks with Ishiba in conjunction with the Japanese premier’s two-day official visit to Malaysia which started yesterday.

Anwar also thanked Japan for its long-standing relations with Petronas in the area of liquefied natural gas, with Japanese companies now involved in the country’s carbon capture utilisation storage via Petronas’ clean energy policy and through the delivery of carbon-neutral LNG cargo to Shikoku Electric Power and Hiroshima Gas.

Commenting briefly on the rare earth elements (REE) sector, Anwar said he hopes to get Japan’s involvement in the development of an REE processing plant.

During the joint-press remarks, Anwar said he had mentioned the formation of the ASEAN Energy Grid linking Laos, Thailand, Malaysia, and Singapore, and the initiative by Sarawak for an undersea energy cable from Sarawak to Peninsular Malaya and Singapore. “This requires participation from Japan, other than the countries involved,” he added.

Anwar earlier emphasised that trade and investment issues have been a top priority during the visit by Japan’s Prime Minister and his delegation, alongside matters pertaining to higher education.

Ishiba said Japan has agreed that it would strengthen collaboration with ASEAN in the area of supply chain resilience.

“We also agreed to deepen cooperation on the Asia Zero Emissions Community (AZEC) and to advance collaboration in the area of green transformation between the two nations. To ensure energy security and achieve decarbonisation, we will enhance cooperation in areas such as ammonia-fuelled gas turbines, CCS (carbon capture and storage), hydrogen, and LNG. This will include cooperation in Sarawak,” he said.

Ishiba, currently on a two-day official visit to Malaysia, was accorded a formal welcoming ceremony at the Perdana Putra Complex today.

Malaysia’s ties with Japan have grown from strength to strength with the elevation of bilateral relations to a Comprehensive Strategic Partnership in December 2023.

Japan is a key economic partner for Malaysia, with a total of 2,821 manufacturing projects involving Japanese participation implemented in Malaysia as of June 2024. These projects represented investments worth RM105.2 billion (US$30.4 billion) and have generated employment for almost 345,000 people.

Source: Bernama

PM Anwar hopes Malaysia-Japan hydrogen energy project could be facilitated by May 2025